Sometimes, nice guys finish last.
Tom Brady said earlier this week he’d “love” to give cornerback Malcolm Butler the truck he was given for being named the MVP of Super Bowl XLIX. The act of kindness could cost the New England Patriots quarterback, though, as there are major tax implications, according to Forbes.
The 2015 Chevy Colorado given to Brady is considered a taxable prize under the Internal Revenue Code, section 74. That means it’s taxed at Brady’s federal income tax rate of 39.6 percent — plus state income tax — and could come with a tax bill of roughly $13,500, if we use TrueCar.com’s $34,000 fair market value estimate as a baseline.
There also will be gift tax if Brady opts to give the truck to Butler. That, according to Forbes, could cost $8,000, as the tax code only allows one person to give another person $14,000 tax free before assessing a donor level tax on the gift.
In other words, according to Forbes, Brady could be looking at a combined federal tax hit of $21,500 if he chooses to follow through on his desire to reward Butler for his game-changing performance in Super Bowl XLIX. Yes, that’s chump change in the Brady household. But hey, it’s his cash.
The Seahawks were a worthy adversary. So, too, is the IRS.
Thumbnail photo via Mark J. Rebilas/USA TODAY Sports Images